Ministry of Defence

Chinook Contract Update

Grant Shapps: I am pleased to be able to inform the House that I have now personally written to US Defense Secretary Lloyd Austin informing him of my final decision to proceed with the first tranche of the Chinook Capability Sustainment Programme. The programme will deliver a total of 14 Extended Range Chinook Helicopters to the Department with delivery from 2027 and will enable us to cement our superiority in the skies and ability to respond at pace to situations across the globe. The UK is the only nation to be provided access to this class-leading heavy lift helicopter capability outside of the US. The Extended Range variant of the latest Chinook model is specifically enhanced to conduct longer range special operations and contains more advanced technology than what is needed on a standard Chinook. I have carefully considered the case for investment and detailed work has served to reassure me that the range of advanced capabilities offered by the programme are critical to remaining ahead of threats such that we retain the ability to project force into the most dangerous of environments when called upon. The capabilities offered by H-47(ER) are unmatched and the programme offers real value for money in delivering national policy. I would like to express my sincere gratitude to my predecessor for presenting the opportunity to review the programme. Sterling work with our allies and partners in the United States has helped reduce the costs associated with the programme by over £300M so far and the programme is now affordable to the Department. These collaborative efforts pave the way for future Foreign Military Sales with the United States. Our extensive negotiations with the United States have helped cement reforms in US Foreign Military Sales acquisition for the UK, which has now successfully passed into law. These laws will increase the speed and predictability of military procurement from the US going forward and will strengthen shared partnerships like AUKUS. As I stated in my recent address at Lancaster House, our adversaries are mobilising. The Extended Range Chinook is one of a raft of next generation capabilities that will ensure the United Kingdom is able to defend its interests in this more dangerous world. Interoperable with our strongest allies, we will together ensure the continued success of our winning alliances. Proceeding with the programme will also deliver estimated UK prosperity benefits of an additional £151M for the period up to 2031 over those that the current fleet would generate. With eight percent of H-47(ER) aircraft production and in-service support being provided by UK industry it will further support key skills in areas such as avionics and electric power. Leonardo Electronics UK provide complex components for the Defensive Aids Suite, BAES Rochester delivers a cutting-edge Flight Control system and several other UK based companies provide a range of components used in the production of the H-47(ER), with many more involved in the production of the global Chinook fleet. I have also instructed my officials to conduct a review into the balance between our heavy and medium lift helicopter fleets to ensure our vertical lift capabilities are optimised to meet our standing requirements whilst offering the best possible value for money for the Department and the taxpayer. The Chinook Extended Range announcement adds to the list of concrete milestones achieved in this government’s tenure and our uncompromising approach to ensuring the future security and prosperity of our great nation.

Department of Health and Social Care

Modern Slavery Regulations

Andrew Stephenson: Today, I am pleased to announce that we will be continuing the government’s goal of introducing robust regulations to ensure the eradication of modern slavery in NHS supply chains in England. This is in line with our government’s world-leading ambition to tackle modern slavery. These regulations will support continued efforts to build an ethical and reliable UK health system. The Department of Health and Social Care has pledged to put an end to modern slavery in the NHS' supply chains. As set out in the National Health Service Act 2006, we will be creating regulations to eradicate the use in the health service of goods and services which are tainted by slavery and human trafficking. These regulations will place legal duties on public bodies to assess modern slavery risk in procurement and contract activities and take reasonable steps to address and where possible eliminate that risk. My honourable friend, Lord Kamall, committed to introducing these regulations within 12 to 18 months of the enactment of the Health and Care Act 2022. Since making this commitment, a large amount of work has happened for both modern slavery and procurement policy both within DHSC and the NHS, and across Government. The introduction of these regulations has therefore been delayed so we can ensure they are fit for purpose and interact with the current legislation and updated policies. DHSC, supported by NHS England, delivered a review in December 2023 into the risk of modern slavery within NHS supply chains. The review showed a significant amount of commitment from our suppliers to tackling modern slavery in their supply chains, and made a recommendation to lay the regulations. Other work has been ongoing to reform procurement rules in the UK. The Procurement Act 2023 will be enacted on 1 October 2024 and will set out the new laws the public sector is required to follow when a procurement is within the duties prescribed. The Procurement Act 2023 created specific means for debarment, including ‘professional misconduct’ where a serious breach of ethical standards is found; our regulations will operate compatibly with this requirement. Further, in January 2024, the Provider Selection Regime also came into force which sets out procurement rules for the procurement of clinical services; the NHS is now implementing these new procurement regulations. The developments to understand modern slavery risk in NHS supply chains, and the introduction of new procurement laws are relevant to our modern slavery regulations. The regulations will place legal duties to assess modern slavery risk in their supply chains and take reasonable steps in a proportionate and relevant way when buying goods and services for the NHS. They will include duties requiring public bodies to first assess the extent of the modern slavery risk in relation to that procurement and then take reasonable steps to address and where possible eliminate that risk. Reasonable steps include:ensure robust selection and award criteria is built into their tenders to respond to identified risks;include specific contract terms to monitor and require mitigation where instances of modern slavery are discovered. This spring, the department will launch a public consultation to further support the development of the modern slavery regulations. It is with this consultation that we will publish our draft regulations for the first time. We will welcome the views and contribution from a wide range of stakeholders, including public bodies, suppliers, trade associations, interest groups and the public. Subject to the outcome of the consultation we intend to lay draft regulations before Parliament in due course. Modern Slavery has no place in our society, and DHSC has a duty to eradicate the use of goods and services tainted by modern slavery in NHS supply chains. This is also global effort — that is why we will be working collaboratively across government to ensure that our work reflects these priorities, and the duties of public bodies within our regulatory framework.

Department for Levelling Up, Housing and Communities

New Extremism Definition and Community Engagement Principles

Michael Gove: The terrorist attack in Israel on 7 October, its aftermath and the domestic implications have all sharpened our focus on the pressing need to enhance counter extremism and community cohesion in the UK.The ways in which extremist agendas are pursued have evolved since extremism was first defined by government in 2011. The government’s approach must evolve too. There is cause for serious concern about the growing influence of organisations such as the British National Socialist Movement and Patriotic Alternative who promote Neo-Nazi ideology, argue for forced repatriation, a white ethno-state and the singling out of minority groups for intimidation. The targeting of both Muslim and Jewish communities and individuals by these groups is a profound concern, requiring concerted action.Organisations such as the Muslim Association of Britain, the British affiliate of the Muslim Brotherhood and other groups such as Cage and MEND give rise to concern for their Islamist orientation and views. These groups are divisive forces within Muslim communities and cause real harm to them.Without prejudicing any formal process, these are the kind of organisations that we may assess to consider if they meet our definition of extremism and, if they do, will take action as appropriate against those that do.Islam is a great faith that is practiced worldwide; a religion of peace that provides spiritual nourishment to millions, inspires countless acts of charity and celebrates virtues of generosity, compassion and kindness. Islamism, however, is a political ideology that seeks to divide, calls for the establishment of a totalitarian state government by sharia law and seeks to overthrow liberal democratic principles. We must be very conscious of conflating the experiences and motivations of the majority of British Muslims, who want to practice their faith peacefully and in line with British values, and Islamists, who seek to abuse religious values and traditions or subvert our society. Many Muslim scholars have made the distinction: Islam is not Islamism.To tackle extremism head-on, the Department for Levelling Up, Housing and Communities has worked with the Home Office, as well as other government departments and external agencies and practitioners, to update the 2011 definition of extremism based on a careful consideration of extremist threats to our liberal democracy, rights and freedoms. With this new definition, we will be assessing whether these, and other organisations, meet our definition and will take action as appropriate.However, this is not a new law, it does not create new criminal offences, and through this definition we have taken care to protect our democratic right of freedom of expression and belief, and not to curtail the civil liberties and rights of people in the UK.It is important for government to be clear and transparent over what extremism is and how it is recognised, so in due course we will also be publishing a framework to support frontline practitioners. This framework will be publicly available and kept up to date with the landscape of extremism.Community engagement is a fundamental part of the work of many UK government ministerial departments. We are proud to engage with groups and individuals from across the country – from charities and community organisation, to local people. Our external engagement can strengthen our democracy, our policy-making and our society.We also know, however, through the Independent Review of Prevent, that if best practice is not followed, the UK government’s engagement with communities and external groups can inadvertently provide a platform, funding or legitimacy for individuals, organisations or groups that oppose our shared values. This allows extremists, of all ideologies, to exert greater influence and be legitimised and publicly emboldened.To ensure that we maximise the benefits of engagement and minimise the risks, we are publishing a new set of community engagement principles that central government departments will be expected to consider when undertaking external engagement or providing funding.To support this work to tackle the threat of domestic extremism, Department for Levelling Up, Housing and Communities is setting up a new counter-extremism centre of excellence as a world-leading authority on best practice, data and research. The centre of excellence will provide leadership for departments’ operationalisation and implementation of the new extremism definition, cross-government standards and extremism-related due diligence process. In time, it will also become home to new counter-extremism assessment and analytical functions and capabilities. The centre will work with the Commission for Countering Extremism to upskill officials and institutionalise counter-extremism literacy, plugging the gaps in HMG’s existing counter-extremism capability.To protect our democratic values and improve social cohesion, it is important both to reinforce what we all have in common and to be clear in identifying the dangers posed by extremism. That is why we are proud to have provided additional funding for the Community Security Trust and Tell MAMA. Furthermore, we are establishing a new cohesion fund to provide additional support for grassroots organisations working to tackle these issues.We recognise that tackling extremism and supporting community cohesion requires a holistic approach. The Department for Levelling Up, Housing and Communities has been working with local authorities, civil society and faith groups – particularly in those areas where social cohesion is most under strain – to reduce tensions and explore the most constructive support that we can offer.

Department for Energy Security and Net Zero

Energy Efficiency Update

Claire Coutinho: Today, I am announcing updates on the Boiler Upgrade Scheme (BUS) and the Clean Heat Market Mechanism (CHMM). I am also announcing that we are publishing the government response to the Improving Boiler Standards and Efficiency Consultation. Boiler Upgrade SchemeThe BUS provides grants to encourage property owners to replace existing fossil fuel heating with more efficient, low carbon heating systems. On 23rd October, we increased the grant levels for heat pumps to £7,500, making the BUS one of the most generous schemes of its kind in Europe. Since then, applications have risen sharply. October, November and January have been the highest 3 months for BUS applications ever, and December applications were up 49% on December 2022. The latest figures for January 2024 were a 39% year-on-year increase on January 2023 - showing that our approach is working. Up to the end of January 2024, 33,424 applications have been made to the scheme and it has paid out 20,497 vouchers to properties across England and Wales, amounting to just over £113 million. Today we are publishing our response to the consultation on proposed changes to the BUS. The response addresses changes proposed by stakeholders including the Environment and Climate Change Committee, aimed at broadening the pool of properties eligible for the Scheme. We will: Remove the requirement for a property to have no outstanding Energy Performance Certificate recommendations for loft and cavity wall insulation – although government guidance remains that properties should be appropriately insulated. This will address concerns about forcing hard-pressed families to carry out insulation upgrades to be eligible for the scheme by instead empowering them to decide what is right for them.Increase the capacity limit for shared ground loops from 45kW to 300kW. This will address concerns that the cost of groundworks for ground source heat pumps is a significant barrier to deployment and this change will spread the costs of ground infrastructure, making them a more affordable solution for consumers.Expand the definition of biomass boilers eligible for the scheme to include those which have a cooking function, provided it is integrated and cannot be controlled separately to the heating function of the property. This will allow a wider range of biomass boiler models under the scheme, thereby widening consumer choice.Introduce flexibility into the regulations to be able to vary the grant levels more quickly for specific types of property, in future, if needed in response to changing market conditions or future regulation.   Clean Heat Market MechanismThe Government remains fully committed to supporting the transition to low-carbon heating, including the aim for 600,000 heat pump installations per year by 2028. Today we are publishing an addendum to the Government’s Response to the Clean Heat Market Mechanism consultation, which was published on 30 November 2023.In line with our proportionate and pragmatic approach to net zero, we are committed to supporting families to make changes to their homes in a way that does not force them before they are ready or saddles them with unnecessary costs. That’s why we increased the Boiler Upgrade Scheme grant by 50%. Our plan is working, as the sustained increase in applications to the scheme shows.We have recently seen unjustified price hikes for gas boilers by some manufacturers with considerable market power. These pricing decisions have called into question whether the home heating industry, which has four companies dominating 90% of the market, is working as well as it should and delivering the best outcome for consumers. We are calling for the Competition and Markets Authority to conduct a review of the home heating appliance market to understand whether any weakness in competition is contributing to prices being higher than they would be in a well-functioning market.The Government has scrapped the implementation of the Clean Heat Market Mechanism until April 2025, adjusting the launch from 1 April 2024 to 1 April 2025. In doing so, the target levels for 2025/26 (set at 6% of relevant boiler sales), and other aspects of the scheme’s design and implementation, would remain as set out in the Government’s November 2023 consultation response. Improving Boiler Standards and Efficiency Consultation: Government ResponseThe government response to the Improving Boiler Standards and Efficiency Consultation sets out updated proposals to improve gas boiler system efficiency which will reduce household energy bills. In addition, only if a decision is taken in 2026 that hydrogen will play a substantive role in heat decarbonisation will the Government move to require domestic gas boilers be hydrogen-ready and then only from 2030. The response also set out plans to enable the installation of high-quality, efficient hybrid heat pumps. We plan to implement most proposals via an update to ecodesign and energy labelling regulations, which would apply in Great Britain. We intend to publish a consultation on draft legislation to give effect to these proposals in due course.

Energy Infrastructure Planning Projects

Amanda Solloway: This Statement concerns an application for development consent made under the Planning Act 2008 by North Lincolnshire Green Energy Park Limited for development consent for the construction and operation of a combined heat and power (CHP) enabled energy generating development, with an electrical output of up to 95 megawatts (MWe), incorporating carbon capture, associated district heat and private wire networks (DHPWN), hydrogen production, ash treatment, and other associated developments on land at Flixborough Industrial Estate, Scunthorpe.Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the Examining Authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a Statement to Parliament to announce it. The current statutory deadline for the decision on North Lincolnshire Green Energy Park application is 15 March 2024.I have decided to set a new deadline of no later than 10 May 2024 for deciding this application. This is to ensure there is sufficient time for the Department to conclude its assessment of the additional information that has been supplied through consultation.The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.

Treasury

Pillar 2: Addition of an anti-abuse rule in the UK

Gareth Davies: On 15 December 2023, the UK, and over 135 members of the OECD/G20 Inclusive Framework on BEPS, agreed the third set of Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar 2), which was published on 18 December. This guidance includes a technical reform to close off certain transaction-based tax avoidance mechanisms. These avoidance transactions are being marketed to taxpayers internationally with the aim of allowing them to exploit the Transitional Country-by-Country Reporting (“CBC”) Safe Harbour, which is a temporary simplification contained in the Model Rules. The guidance confirms that a Constituent Entity cannot qualify for the Transitional CBC Safe Harbour as a result of entering into such transactions. In particular, Section 2 of the Guidance inserts paragraphs 74.1 to 74.31 into the Safe Harbours and Penalty Relief OECD guidance document (which was published in December 2022), in order to provide further guidance on the application and operation of the CBC Safe Harbour, as well as making certain other changes, including amendments to paragraph 22 of that document. As with any such agreement, it is for the government to choose whether and how to legislate for these provisions. The government intends to apply these provisions from 14th March 2024 to prevent a loss of UK tax and will legislate in a future Finance Bill. The government will consult with interested stakeholders on how the provisions are legislated, with a view to ensuring the legislation operates as envisaged without any unintended outcomes.   The OECD guidance on this rule was published at https://www.oecd.org/tax/beps/administrative-guidance-global-anti-base-erosion-rules-pillar-two-december-2023.pdf on pages 18-21.

Department for Business and Trade

Turkey Trade Negotiations Update

Kemi Badenoch: On Thursday 14 March 2024, the Department for Business and Trade launched negotiations for a new, upgraded free trade agreement with Turkey.In line with our commitments to scrutiny and transparency, the Department for Business and Trade has published, and placed in the House Libraries, more information on these negotiations. This includes:The United Kingdom’s strategic case for a UK-Turkey Free Trade Agreement (FTA).Our objectives for the negotiations.A summary of the United Kingdom’s public consultation on trade with Turkey.Scoping analysis, providing a preliminary economic assessment of the impact of the agreement.The United Kingdom’s negotiating objectives for the upgraded agreement, published today, were informed by our Call for Input, which requested views from consumers, businesses, and other interested stakeholders across the United Kingdom on their priorities for enhancing our existing trading relationship with Turkey.These negotiations follow our signing of the UK-Turkey Trade Continuity Agreement on 29 December 2020.A new and enhanced trade agreement with Turkey is a key part of the United Kingdom’s strategy to secure advanced modern agreements with new international partners, and upgrade existing continuity agreements to better suit the UK economy.The UK and Turkey are long-term strategic partners with deep economic links. Total trade in goods and services between the UK and Turkey was worth around £26 billion in 2022. Turkey is a dynamic economy with one of the fastest GDP growth rates among OECD members. An upgraded FTA with Turkey will aim to reduce and remove barriers in sectors of strategic importance to the UK such as services and digital trade positioning British businesses advantageously for the opportunities of the future.Our existing agreement, which forms the basis of our current trading relationship, is outdated and not designed for a digital age. Whilst the existing agreement provides tariff free access for 98.8% of UK goods exports by value to Turkey (2021), it contains only limited provision for the United Kingdom’s thriving services sector. We intend to change this by putting services at the heart of any new agreement, to benefit the UK economy. Upgrading our trade deal with Turkey will help unlock a stronger, more advanced partnership. The new deal will play to our strengths, reflecting the realities of trading in the 21st century and allowing us to take advantage of future innovations.Around 8,000 businesses from all parts of the United Kingdom exported goods to Turkey in 2022. Of these, 6,800 were Small and Medium Sized Enterprises (SMEs). The United Kingdom’s SMEs could be key winners from a new agreement with Turkey, as we seek to make it easier to do business and focus on trade barriers that may have deterred them from previously entering this exciting marketplace.The Government is determined that any agreement must work for consumers, producers, investors, and businesses alike. We remain committed to upholding our high environmental, labour, public health, food safety and animal welfare standards, alongside protecting the National Health Service. We will not negotiate a deal that undermines the UK’s points-based immigration system.The Government will continue to update and engage with key stakeholders, including Parliament, Devolved Administrations, and the Crown Dependencies throughout our negotiations with Turkey.

Home Office

Statement of Changes in Immigration Rules

Tom Pursglove: My rt hon Friend the Home Secretary is today laying before the House a Statement of Changes in Immigration Rules. As announced by the Prime Minister and Home Secretary on 4 December 2023, changes are being made to curb immigration abuse and reduce net migration. The changes will mean around 300,000 people who came to the UK last year would now not be able to come. Migration is far too high, which is why we are introducing a package of measures which will deliver the biggest ever cut to migration over the course of this year. These changes, including the increase to the minimum income requirement (MIR) for those applying in the partner route, are supportive of the wider ambition for the UK to be a high-wage, high-productivity, high skill economy. Changes to the Skilled Worker route Our changes will ensure businesses invest in the resident workforce rather than over-relying on migration, while bringing salaries in line with the average full-time salary for eligible jobs. Today the Government is laying the following measures as part of the net migration package announced on 4 December: Sponsoring employers must pay Skilled Workers at least a general salary threshold or the going rate for the individual occupation, whichever is higher. The general salary threshold is being raised from £26,200 (based on 25th percentile UK earnings in eligible occupations) to £38,700 (based on median UK earnings in eligible occupations). Going rates are also being raised from the 25th percentile to the median. The new thresholds and going rates are based on the latest Office for National Statistics (ONS) pay data. Workers sponsored for Health and Care visas, or in occupations where going rates are set using national pay scales, are exempt from the new median salary requirements. Instead, a general threshold based on the 25th percentile continues to apply, and is being updated from £26,200 to £29,000, based on the latest ONS pay data. The Shortage Occupation List is being removed and replaced by a new Immigration Salary List (ISL). The contents of the new list have been informed by a review carried out by the independent Migration Advisory Committee (MAC). The MAC will carry out a full review of the list later in 2024. As with the previous list, included occupations have a 20% discount to the general salary threshold (to £30,960 or £23,200, depending on whether they would otherwise be subject to the £38,700 or £29,000 threshold), but the previous 20% discount to the going rate requirement is being removed. These measures are on top of changes we have already implemented in March, where we removed the right of care workers and senior carers to bring dependants, and introduced a requirement that care providers in England can only sponsor migrant workers if they are undertaking activities regulated by the Care Quality Commission (CQC). Changes to the Minimum Income Requirement under the partner routes  We have also taken the first step to bring the financial requirement that must be met to sponsor a partner and child(ren) under the family rules, into line with the new minimum general salary threshold for skilled workers of £38,700, with an initial increase to £29,000. This will no longer include an additional income requirement for children. This increase ensures that families will make a net positive impact on the economy, as well as contributing to the Government target to lower net migration. We have also brought the MIR for HM Armed Forces (which includes the Royal Navy, the Royal Marines, the Army, including the Brigade of Gurkhas and the Royal Air Force) partner route into line with the HM Armed Forces salary minimum threshold, which is currently £23,496. This will similarly no longer include an additional income requirement for children. Tethering the MIR for HM Armed Forces to their salary threshold takes into account the unique nature of their service, the Armed Forces Covenant, and the critical need to recruit and retain HM Armed Forces personnel in order to maintain national security. Other aspects of the MIR under both routes will remain unchanged, such as the various ways in which it can be met and the consideration of exceptional circumstances where it may not be met in certain cases. The rules also make transitional provisions for those already granted under the family or armed forces rules. Changes relating to the EU Settlement Scheme (EUSS) We are amending the relationship requirements under Appendix Victim of Domestic Abuse (VDA) to include all partners with pre-settled status under the EUSS. The EUSS in Appendix EU enables EU, other European Economic Area (EEA) and Swiss citizens living in the UK by the end of the transition period on 31 December 2020, and relevant family members, to obtain immigration status. Appendix VDA provides access to immediate settlement for victims of domestic abuse who meet its relationship requirements. They currently include, together with their dependent children, any partner sponsored under Appendix FM by an EEA or Swiss citizen with settled status or (based on their residence in the UK before the end of the transition period) pre-settled status under the EUSS. The changes expand the scope of those immediate settlement provisions to include a spouse, civil partner, or durable partner with pre-settled status under the EUSS (meaning that the relationship was formed before the end of the transition period), and their dependent children. We will also include them within the scope of the Migrant Victims of Domestic Abuse Concession (outside the Immigration Rules) so that they can obtain leave outside the rules with access to public funds pending the outcome of an application in the UK under Appendix VDA. This will ensure that partners of EEA and Swiss citizens with EUSS status are treated equally under these domestic abuse provisions, regardless of whether the relationship was formed before or after the end of the transition period. A person granted immediate settlement under Appendix VDA will still be able to apply for settled status under the EUSS at the point at which they would otherwise have been eligible for it, based on their continuous residence in the UK. However, in line with Article 18(1)(h) of the Withdrawal Agreement, the changes also require a person resident in the UK before the end of the transition period – where they seek to obtain settled status under the EUSS in place of indefinite leave to enter or remain granted to them under another route – to have held their existing indefinite leave at the end of the transition period. Immigration Salary List and Asylum We are replacing the Shortage Occupation List with a new Immigration Salary List. Eligible asylum seekers granted permission to work in the UK can currently only work in roles on the Shortage Occupation List. Given the Shortage Occupation List’s replacement with the Immigration Salary List, asylum seekers who are eligible and granted permission to work in the UK from 4 April will only be able to work in roles on the Immigration Salary List. Changes to Appendix AR: Administrative Review EU  Appendix AR: Administrative Review EU has been redrafted and simplified in line with Appendix AR: Administrative Review. It has also been amended to remove the scope to apply out-of-time for administrative review of a relevant EUSS decision taken before 5 October 2023. Individuals will have had more than five months to apply out-of-time for administrative review, and they will continue to be able to apply to the First-tier Tribunal to appeal out-of-time and the tribunal will consider that application on its merits. The scope to apply for administrative review of a relevant EUSS decision taken from 5 October 2023 was removed by HC 1780. There are a number of other changes to the Immigration Rules, mainly of a minor or technical nature. The changes to the Immigration Rules are being laid on 14 March 2024 and will come into effect on 4 April 2024.